Trax Technologies, a Scottsdale, Ariz.-based supply-chain technology company, has raised $10 million in equity funding, it announced Thursday. Series B investors include River Cities Capital Funds and Capital Southwest Corporation.
A Scottsdale-based technology company received an infusion of $10 million in private-equity investment. The company, Trax Technologies, serves global shippers and transportation carriers. Trax will use the cash to help further reduce shipping costs and improve supply-chain efficiencies for a growing range of customers.
Trax provides software as a service (or SaaS) technology and managed services to help its customers process invoices for freight shipment and logistics services. In business for 20 years, the company now processes more than 100 million freight bills a year, valued at about $13 billion. Trax’s customers number among the world’s biggest shippers and their logistics service providers.
The investment, from River Cities Capital Funds (or RCCF) and Capital Southwest Corporation, is Series B funding.
“Our services enable the industry to think differently about freight audit and payment processing for logistics invoices,” said J. Scott Nelson, CEO of Trax. “Today shippers are led to believe they have to audit their freight invoices because they are being overcharged. But that fear-based thinking limits value creation by putting all focus on repeatedly finding versus eliminating defects at the root cause.”
Trax focuses instead on understanding and eradicating the defects in the logistics order to cash cycle — from invoice creation to payment, Nelson said. “Our technologies manage the complexity of different currencies, languages, information systems, laws and regulations, and hundreds of points of potential failure in the settlement process,” Nelson said. “We collect, correct and consolidate freight-related data. We turn it into valuable information that can help carriers and shippers increase supply-chain efficiency, reduce cost, improve visibility and simplify their settlement processing.”
“I believe we’re unique in offering both shippers and their logistics service providers such a wide range of benefits,” Nelson said. “We provide clarity, visibility and intelligence in managing freight spending and receivables. We reduce financial risk and labor cost for all parties in the transaction. And we improve cash management.”
The investment from RCCF and Capital Southwest will help Trax further enhance technologies and services, serve our customers better, and accelerate the company’s “already fast growth,” Nelson said.
The investment is the first of RCCF’s new River Cities Fund V. “Trax is the leading global provider of solutions that manage transportation related spend,” says Rob Heimann of River Cities, who will join the Trax board of directors. “Trax is entering a period of tremendous growth as global customers focus on controlling costs, enhancing transparency, reducing financial risks and shortening supply chains.”
About Trax Technologies
The company is headquartered in Scottsdale, Arizona, with operating centers in Scotland, Costa Rica, Singapore and the Philippines. Trax’s customers spent more than $13 billion on shipping and transportation costs in 2012. Trax processed an average of three logistics bills and three supporting documents during every second of the year. For more information please visit www.traxtech.com.
About River Cities Capital Funds
River Cities Capital Funds provides equity financing and business acumen to high-potential private companies that are ready to expand. The firm focuses on the IT and Healthcare sectors. It has more than $500 million under management and is actively seeking new investments for Fund V. For more information, please visit www.rccf.com.
About Capital Southwest Corporation
Since Capital Southwest’s formation in 1961, the company has always sought to invest in companies with strong management teams and sound financial performance. As a public company, Capital Southwest is fortunate to have the flexibility to hold investments indefinitely. Dedication to this patient investment strategy enables Capital Southwest’s portfolio companies to achieve their full potential. Visit www.capitalsouthwest.com to learn about Capital Southwest’s investment criteria and to see how the company’s capital can accelerate the growth of your company.